Government Extends Minimum Lease Terms to Five Years

Government Extends Minimum Lease Terms to Five Years

APA/BARBARA GINDL

From the rent price brake anchored in the government programme of ÖVP, SPÖ and NEOS, around 2.7 million people in Austria benefit, according to Vice-Chancellor and Minister for Housing Andreas Babler.
“We have, with great speed, intercepted the rent increases in the regulated sector, which as of April 1 would have affected over one million apartments,” said the SPÖ leader. The planned extension of the minimum lease terms from three years to five years cannot be implemented before summer.

“We will extend the minimum terms to at least five years,” Babler announced on Monday at a press conference.
“In the coming years, the next rent price brake is to be introduced,” the Vice-Chancellor further indicated. The first measure had brought a significant relief to 69 percent of tenants nationwide. Currently, work is being done on a unification of tenancy law and on expanding the rent price brake to the remaining sectors—for example, also on a regulation for commercial space rents. That takes some time. “Tenancy law is a very complex area,” emphasized Babler. “Legally, it is also a challenge to draft.” A new regulation for private rents is also being sought in due course.

“What we have experienced in recent years—a rise in the cost of living that hits one with full force—must not happen again,” said the SPÖ chairman. Since 2010, rents in Austria have risen by 70.3 percent, and in the past two years by around 25 percent.

Brake only for part of the housing market

The rent price brake currently applies only to the regulated sector of the housing market, but not to the unregulated, free market.
“In private new construction there are no rental law restrictions,” stated the chairwoman of the Vienna Tenants’ Association and SPÖ housing spokesperson Elke Hanel-Torsch.

For 2025, guideline and category rents have been frozen—this affects around 516 000 apartments, including almost all old-building flats—as well as the index-linked charges of cooperative apartments (around 698 000 apartments) and municipal housing. Next, these rents may only increase by a maximum of 1 percent in 2026, 2 percent in 2027. From 2028, a limit of 3 percent on rent increases will apply in the “entire housing sector.” Without the rent freeze, rents this year as of April would have been raised on average by 3.16 percent in line with inflation. Affected tenants saved around €138 million in 2025 alone due to this measure.

Since the scope of the rent price brake and the details of the new regulation are confusing for many affected parties, the Tenants’ Association is launching a free advisory campaign next week (June 10 to 13) at its headquarters in Vienna. On these days, one can come by without an appointment (with one’s lease) or send it by email to mietpreisstopp@mietervereinigung.at. “One cannot leave tenants alone with this issue,” said the housing spokesperson. In future, a standard lease agreement will also be made generally available, which can provide security for both the tenant and the landlord side.

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